Shoe Carnival (SCVL) reported 3rd Quarter October 2017 earnings of $0.66 per share on revenue of $287.5 million. The consensus earnings estimate was $0.64 per share on revenue of $286.9 million. Revenue grew 4.7% on a year-over-year basis.

The company said it expects fiscal year earnings of $1.42 to $1.49 per share on revenue of $1.020 billion to $1.025 billion. The company's previous guidance was earnings of $1.35 to $1.45 per share on revenue of $1.006 billion to $1.019 billion and the current consensus earnings estimate is $1.45 per share on revenue of $1.01 billion for the year ending January 31, 2018.

Shoe Carnival is a family footwear retailer, offers customers an assortment of moderately priced dress, casual and athletic footwear for men, women and children.

Shoe Carnival Reports Third Quarter Financial Results

Shoe Carnival, Inc. (SCVL), a leading retailer of moderately
priced footwear and accessories, today reported results for the third
quarter and nine months ended October 28, 2017.

Third Quarter Highlights

--
Net sales increased 4.7 percent to $287.5 million

--
Comparable store sales increased 4.4 percent

--
Earnings per diluted share increased 22.2 percent to $0.66

--
Inventory was down 4.3 percent on a per-store basis

Cliff Sifford, Shoe Carnivals President and Chief Executive Officer
commented, "We are very pleased with our third quarter financial
results, which reflect the strength of our selection of family footwear
for the back-to-school season and our teams ability to increasingly
connect with customers across Shoe Carnivals multi-channel presence.
During the quarter, our traffic was down low single digits, particularly
due to the three hurricanes affecting Texas, Florida and Puerto Rico.
Despite the inclement weather in these regions, we experienced solid
increases in both units per transaction and conversion which helped
drive a 4.4 percent increase in comparable store sales for the quarter.
These increases, combined with our ongoing commitment and ability to
effectively manage expenses, resulted in a 22 percent year-over-year
increase in quarterly earnings per diluted share. Based on our third
quarter performance and our outlook for the remainder of the year, we
are pleased to raise our fiscal year outlook."

Third Quarter Financial Results

The Company reported net sales of $287.5 million for the third quarter
of fiscal 2017, a 4.7 percent increase, compared to net sales of $274.5
million for the third quarter of fiscal 2016. Comparable store sales
increased 4.4 percent in the third quarter of fiscal 2017.

Gross profit margin for the third quarter of fiscal 2017 decreased 0.1
percent to 29.8 percent compared to 29.9 percent in the third quarter of
fiscal 2016. Merchandise margin decreased 0.8 percent and was partially
offset by buying, distribution and occupancy expenses, which decreased
0.7 percent as a percentage of net sales compared to the third quarter
of fiscal 2016.

Selling, general and administrative expenses ("SG&A") for the third
quarter of fiscal 2017 increased $1.2 million to $67.8 million. As a
percentage of net sales, these expenses improved 0.7 percent to 23.6
percent compared to 24.3 percent in the third quarter of fiscal 2016.

Net income for the third quarter of fiscal 2017 was $10.7 million, or
$0.66 per diluted share. For the third quarter of fiscal 2016, the
Company reported net income of $9.7 million, or $0.54 per diluted share.

Nine Month Financial Results

Net sales during the first nine months of fiscal 2017 increased $9.0
million to $775.9 million compared to the same period last year.
Comparable store sales for the thirty-nine week period ended October 28,
2017, increased 0.4 percent.

Net earnings for the first nine months of fiscal 2017 were $22.8
million, or $1.38 per diluted share, compared to net earnings of $24.4
million, or $1.31 per diluted share, in the first nine months of fiscal
2016. The gross profit margin for the first nine months of fiscal 2017
was 29.1 percent compared to 29.3 percent in the same period last year.
SG&A for the first nine months increased $3.1 million to $188.5 million.
As a percentage of net sales, these expenses increased to 24.3 percent
compared to 24.2 percent in the first nine months of fiscal 2016. The
Company opened 19 stores and closed ten stores during the first nine
months of fiscal 2017 compared to 15 store openings and five store
closings in the first nine months of fiscal 2016.

Store Openings and Closings

The Company expects to open 19 stores and close 26 stores during fiscal
2017 compared to opening 19 stores and closing nine stores during fiscal
2016.

Expected store openings and closings by quarter for the fiscal year are
as follows:

New Stores

Store Closings

1st quarter 2017

7

5

2nd quarter 2017

5

4

3rd quarter 2017

7

1

4th quarter 2017

0

16

Fiscal year 2017

19

26

The seven new stores opened during the third quarter include locations
in:

City

Market

Total Stores in

the Market

Bridgeton, MO

St. Louis, MO

14

Exon, PA

Philadelphia, PA

12

Freeport, IL

Rockford, IL

2

Heath, OH

Columbus, OH

3

Poplar Bluff, MO

Paducah, KY

4

Topeka, KS

Topeka, KS

1

Waukegan, IL

Chicago, IL

22

Fiscal 2017 Earnings Outlook

The Company expects fiscal 2017 net sales to be in the range of $1.020
billion to $1.025 billion, with comparable store sales flat to up low
single digits. Earnings per diluted share for the fiscal year are
expected to be in the range of $1.42 to $1.49. Fiscal 2016 earnings per
diluted share were $1.28 and adjusted earnings per diluted share were
$1.40.

Conference Call

Today, at 4:30 p.m. Eastern Time, the Company will host a conference
call to discuss the third quarter results. Participants can listen to
the live webcast of the call by visiting Shoe Carnivals Investors
webpage at www.shoecarnival.com.
While the question-and-answer session will be available to all
listeners, questions from the audience will be limited to institutional
analysts and investors. A replay of the webcast will be available on the
Companys website beginning approximately two hours after the conclusion
of the conference call and will be archived for one year.

Non-GAAP Adjusted Results

The non-GAAP adjusted results for the full year of fiscal 2016 discussed
herein exclude the impact of non-cash asset impairment charges related
to long-lived assets associated with seven of the Companys Puerto Rico
stores, which are recorded in SG&A. These adjusted results are provided
to enhance the users overall understanding of the Companys historical
operations and financial performance. Specifically, the Company believes
the adjusted results provide investors with relevant period-to-period
comparisons of the Companys core operations. The unaudited adjusted
results are provided in addition to, and not as alternatives for, the
Companys reported results determined in accordance with generally
accepted accounting principles. A complete reconciliation of actual
results to the adjusted results appears below in the table entitled
"Reconciliation of Non-GAAP Financial Measures to GAAP."

About Shoe Carnival

Shoe Carnival, Inc. is one of the nations largest family footwear
retailers, offering a broad assortment of moderately priced dress,
casual and athletic footwear for men, women and children with emphasis
on national and regional name brands. As of November 16, 2017, the
Company operates 424 stores in 35 states and Puerto Rico, and offers
online shopping at www.shoecarnival.com.
Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ
Stock Market LLC under the symbol SCVL. Shoe Carnivals press releases
and annual report are available on the Companys website at www.shoecarnival.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that
involve a number of risks and uncertainties. A number of factors could
cause our actual results, performance, achievements or industry results
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements.
These factors include, but are not limited to: general economic
conditions in the areas of the continental United States in which our
stores are located and the impact of the ongoing economic crisis in
Puerto Rico on sales at, and cash flows of, our stores located in Puerto
Rico; the effects and duration of economic downturns and unemployment
rates; changes in the overall retail environment and more specifically
in the apparel and footwear retail sectors; our ability to generate
increased sales at our stores; our ability to successfully navigate the
increasing use of on-line retailers for fashion purchases and the impact
on traffic and transactions in our physical stores; our ability to
attract customers to our e-commerce website and to successfully grow our
e-commerce sales; the potential impact of national and international
security concerns on the retail environment; changes in our
relationships with key suppliers; the impact of competition and pricing;
our ability to successfully manage and execute our marketing initiatives
and maintain positive brand perception and recognition; changes in
weather patterns, consumer buying trends and our ability to identify and
respond to emerging fashion trends; the impact of disruptions in our
distribution or information technology operations; the effectiveness of
our inventory management; the impact of natural disasters on our stores,
as well as on consumer confidence and purchasing in general; risks
associated with the seasonality of the retail industry; the impact of
unauthorized disclosure or misuse of personal and confidential
information about our customers, vendors and employees; our ability to
manage our third-party vendor relationships; our ability to successfully
execute our business strategy, including the availability of desirable
store locations at acceptable lease terms, our ability to open new
stores in a timely and profitable manner, including our entry into major
new markets, and the availability of sufficient funds to implement our
business plans; higher than anticipated costs associated with the
closing of underperforming stores; the inability of manufacturers to
deliver products in a timely manner; changes in the political and
economic environments in, and continued favorable trade relations with,
China and other countries which are the major manufacturers of footwear;
the impact of regulatory changes in the United States and the countries
where our manufacturers are located; the resolution of litigation or
regulatory proceedings in which we are or may become involved; our
ability to meet our labor needs while controlling costs; future stock
repurchases under our stock repurchase program and future dividend
payments; and other factors described in the Companys SEC filings,
including the Companys latest Annual Report on Form 10-K.

In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors.
Accordingly, any forward-looking statements included in this press
release do not purport to be predictions of future events or
circumstances and may not be realized. Forward-looking statements can be
identified by, among other things, the use of forward-looking terms such
as "believes," "expects," "may," "will," "should," "seeks," "pro forma,"
"anticipates," "intends" or the negative of any of these terms, or
comparable terminology, or by discussions of strategy or intentions.
Given these uncertainties, we caution investors not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. We disclaim any obligation to update any of these factors
or to publicly announce any revisions to the forward-looking statements
contained in this press release to reflect future events or developments.

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

Thirteen

Thirteen

Thirty-nine

Thirty-nine

Weeks Ended

Weeks Ended

Weeks Ended

Weeks Ended

October 28,

October 29,

October 28,

October 29,

2017

2016

2017

2016

Net sales

$

287,469

$ 274,524

$ 775,922

$

766,901

Cost of sales (including buying, distribution and occupancy costs)

201,802

192,514

549,872

542,105

Gross profit

85,667

82,010

226,050

224,796

Selling, general and administrative expenses

67,787

66,558

188,519

185,399

Operating income

17,880

15,452

37,531

39,397

Interest income

(1 )

(1 )

(3 )

(6 )

Interest expense

57

43

248

127

Income before income taxes

17,824

15,410

37,286

39,276

Income tax expense

7,127

5,738

14,462

14,839

Net income

$

10,697

$

9,672

$

22,824

$

24,437

Net income per share:

Basic

$

0.66

$

0.54

$

1.38

$

1.31

Diluted

$

0.66

$

0.54

$

1.38

$

1.31

Weighted average shares:

Basic

15,957

17,609

16,287

18,220

Diluted

15,966

17,614

16,293

18,225

Cash dividends declared per share

$

0.075

$

0.070

$

0.220

$

0.205

Financial Note:

Per share amounts are computed independently for each quarter of the
fiscal year. The sum of the quarters may not equal the total year due to
the impact of changes in weighted shares outstanding and differing
applications of earnings under the two-class method.